The most recent Housing Vacancy Survey data provides good news for multifamily. According to the Census Bureau’s quarterly survey, rental vacancy fell 10 basis points to 8.2%, the lowest percentage since 2001. The tightening rental market is a reflection of an improving economy. This trend could also be an indication of future housing demand, as renting is typically a first step in household formation. The seasonally adjusted homeownership rate remained at 65.1% for the final quarter of 2013.

Recent remodeling data suggest a positive 2014. The fourth-quarter NAHB Remodeling Market Index held steady at 57. This matches the highest reading since 2004. A reading above a level of 50 means that more remodelers see good market conditions than poor ones.